BAD DEBT TIMEBOMB
In just three months, courts issue nearly 7000 orders to pay.. and experts fear worse to come
THE number of court judgments against Scots struggling with debt has soared to a record level.
Sheriff courts issued 6879 debt decrees – orders to pay creditors – against consumers in the first three months of 2017. That’s more than a third more than in the same period last year.
The average value of the judgments rose by seven per cent to £2692. And the total owed was £18.5million – up 46 per cent on 2016.
Campaigners say the figures are yet another sign that a bad debt timebomb is ticking in Scotland.
Peter Hutton of StepChange Debt Charity said: “Levels of debt are already high, and they’re growing quickly.
“An income squeeze is expected in the coming months and many households are already on a knife edge.
“Lenders and debt collectors need to make sure they do everything possible to support people – not deepen problems and add stress and anxiety by aggressively pursuing debts through the courts.”
Britons owe a staggering £1.5trillion in personal debt. Rising inflation is eating into household budgets and many families are relying on the current low interest rates to make ends meet.
Joanna Elson of the Money Advice Trust said: “The important thing for anyone in debt to remember is to get advice from a service like National Debtline. Doing this as soon as possible will put you in the best position to resolve the issue.”